Paying the price: Doping case costs Lance Armstrong

After a week to digest a massive evidence file released against Lance Armstrong by the U.S. Anti-Doping Agency, several sponsors cited the report as they cut ties with the cyclist.

Lance Armstrong, shown here speaking at the opening of a 24 Hour Fitness club in 2005, lost that company's sponsorship deal and six others on Wednesday, including deals with Nike, Trek and Anheuser-Busch. Armstrong also announced he is stepping down as chairman of Livestrong, the charity for cancer patients that he founded.(Photo: Jack Plunkett, AP)

Story Highlights

In one day, 7 sponsors drop Armstrong and an 8th says it has 'no current obligations' to him.

Experts see little chance that Armstrong will rebound as an endorser due to credibility issues.

Several companies say they will continue to work with Livestrong, the charity Armstrong founded.

One week after an avalanche of evidence came crashing down upon him, Lance Armstrong fell further from public grace Wednesday when several corporate partners returned their verdicts: Armstrong is guilty of doping.

No fewer than seven sponsors dropped Armstrong on Wednesday — Nike, Anheuser-Busch and Trek among them — and several made direct reference to the 1,000-page case file released last week by the U.S. Anti-Doping Agency.

Nike cited "seemingly insurmountable evidence" and said it had been "misled" by Armstrong for more than 10 years. Anheuser-Busch said it will part ways with the cyclist by year's end. Trek Bicycle said it was "disappointed" by the doping evidence in the report, while 24 Hour Fitness decided Armstrong "no longer aligns with our company's mission and values."

The corporate moves came the same morning Armstrong announced he was stepping down as chairman of his cancer-fighting foundation, Livestrong, to "spare the foundation any negative effects as a result of controversy surrounding my cycling career."

But the cascade of fleeing sponsors is an indication that more people are persuaded by the 26 witnesses in the doping case against Armstrong than by his efforts to deny it and dismiss it as a "witch hunt."

"It says this guy is Kryptonite," said David Srere, co-president of global branding firm Siegel Gale. "What's the upside in keeping him? He's hurt the sport. He's hurt Livestrong. Arrogance is not a particularly good characteristic for a brand, and I think that's been his downfall."

Mission comes first

The pressure now centers on the International Cycling Union (UCI) as it decides whether it will appeal sanctions imposed on Armstrong by USADA, even though the sanctions came after Armstrong himself declined to fight the charges.

USADA regarded Armstrong's decision as a no-contest plea, banned him for life and stripped his seven titles in the Tour De France. That triggered a requirement that USADA turn over its case file to UCI, which has until the end of the month to appeal to the Court of Arbitration for Sport in Switzerland.

To that end, USADA released a massive file of witness testimony and other evidence it says proves Armstrong was at the center of a long-running conspiracy to use banned drugs and avoid testing positive for them. It also said he resorted to intimidation and retribution against anyone who broke the code of silence.

Armstrong has dealt with doping allegations for years, but the scope of the evidence in the case file seemed to push the drama to the limit, prompting Armstrong to decide he would step down as chairman of the charity he founded after being diagnosed with testicular cancer in 1996.

"He asked for opinions of various people and came to the conclusion that, until things settle down, it was more important to put the mission first," Livestrong CEO Doug Ulman told USA TODAY Sports.

Livestrong long has shown signs of being able to stand on its own, but by Monday, Ulman said, Armstrong was hinting the negative attention was taking away from the foundation's goal to help cancer survivors. Ulman said Armstrong still would participate in events surrounding Livestrong's 15th anniversary celebration this weekend in Austin. He also remains the foundation's founding director.

In a statement, Armstrong said Livestrong and its supporters "are incredibly dear to my heart." Jeff Garvey, Livestrong's vice chairman, will succeed him as chairman.

Jerseys from Armstrong's seven wins in the Tour de France adorn a wall at Livestrong, which is officially the Lance Armstrong Foundation. Wednesday, Nike, Trek and Anheuser-Busch all said they would continue to work with Livestrong, even as they carefully distinguished the charity from its founder.

Nike helped developed LiveStrong's iconic yellow wristbands, a ubiquitous symbol of the foundation's mission. Since 2004, more than 80 million wristbands have been distributed worldwide. Ulman says there are no plans to end production of the bracelets.

Posted!

A link has been posted to your Facebook feed.

Lance Armstrong has announced he has stepped down as chairman of the Livestrong organization. In this photo from July 2009, he is shown in Monaco preparing for the Tour de France.
Bryn Lennon Getty Images

A "LIVESTRONG" bracelet is worn in this photo August 3, 2004. In late May 2004, Nike and the Lance Armstrong Foundation joined forces and created the bracelet campaign with five million bright yellow wristbands bearing the word "LIVESTRONG."
Stephen Chernin Getty Images

A mural is seen on the Lance Armstrong foundation building Aug. 24, 2012, in Austin. The U.S. Anti-Doping Agency stripped Armstrong of his seven Tour de France titles, erasing one of the most incredible achievements in sports after deciding he had used performance-enhancing drugs to do it.
Eric Gay AP

Lance Armstrong gives a Livestrong hat to Sporting Kansas City owner Cliff Illig during an MLS news conference in Kansas City, Kan., on March 8, 2011. The soccer team's new stadium will be named Livestrong Sporting Park.
Orlin Wagner AP

Sen. John McCain, R-Ariz., and Lance Armstrong hold a news conference after they participate in the LIVESTRONG Summit at The Ohio State University in Columbus, Ohio, on July 24, 2008.
Carolyn Kaster AP

A fan holds a placard reading "Go Lance Livestrong" to support Lance Armstrong as she waits for riders during the 12th stage of the 2010 Tour de France on July 16, 2010.
Lionel Bonaventure, AFP/Getty Images

Like this topic? You may also like these photo galleries:

As for Armstrong himself, Srere, the branding expert, says the evidence became too much of an embarrassment for sponsors, particularly Nike.

It was Nike that aired a commercial in 2001 in which Armstrong seemed to mock those who suspected he used performance-enhancing drugs.

"Everybody wants to know what I am on," Armstrong said then. "What am I on? I'm on my bike, busting my ass six hours a day. What are you on?"

The loss of the Nike deal, as well as other endorsements, could cost Armstrong about $30 million, sports marketing agent Steve Rosner tells Bloomberg News.

"The only possible (endorsement) avenue I see for him now is something related to fighting cancer," says Bob Dorfman, an executive vice president at the San Francisco ad agency Baker Street Advertising. "He fought that battle and inspired a lot of people. Maybe you could somehow isolate that. Is there a shot at anything else? No way.

"The first thing you want in an endorser is somebody who is sincere. Obviously, that's not Lance anymore."

According to sworn statements from former teammates released last week, including his close friend and fellow cyclist George Hincapie, Armstrong began using banned drugs around 1995-96. Armstrong has strenuously denied these accusations, accusing USADA and others of waging a vendetta being against him.

In August, he announced he would not to to arbitration to fight USADA's charges against, saying his time was better spent with his family and foundation.

"I am sad about the whole thing," says lymphoma survivor Jen Singer, 45, of Kinnelon, N.J., "because it puts a shadow on the fine work he did with Livestrong,"